However, things are not pretty bad for anyone who bought gold in April 2003 as the yellow metal has done far better than an average sharemarket investor. Notwithstanding the current decline, gold is still up 320 per cent. The price volatility reflects the need of a cautious approach that investors in the yellow metal has to take in doing new things in the market.
For consumers in India, the world's top gold consumer, accounting for 20 percent of global demand, the fall in prices could not have come at a better time than the present one. A lot of them are considering it to be once in a lifetime opportunity. Analysts say the ongoing wedding season in India and the upcoming Akshaya Tritiya festival, could further propel the demand. Indians don't purchase gold just for festive occasions as a lot of people sending the government's inability to keep gold prices under control have been putting their money into gold.
“People are a little worried about inflation and they are moving to gold as an asset, especially in rural areas. The fact that people are investing so much in gold recently suggests we have to give them more faith in financial assets than we have right now,” Chief Economic Advisor Raghuram Rajan had said.
Undoubtedly, the current fall presents lots of opportunities as a lot of Indian consumers were waiting on the sidelines for the price correction to happen. Here are some tips to benefit from the gold price crash:
A price correction can be a temporary phase
Gold, which has risen steadily for many years now, is setting itself up for a correction. Once profit taking in the yellow metals settles down, it is gold's fundamentals as a commodity that will set the long-term direction for prices.
